Djasarmen Purba, Vice Chairman of Committee II, the House of Regional Representative (DPD) highlighted the Government Regulation Number 10 Year 2010 on Procedures of Appropriation Changes and Forest Functions Area. The Government Regulation (PP) does not accommodate the interests of investors and the community as a business organizer in the plantation sector.

Its enforcement resulted in plantation area that managed and has its activity is no longer workable because it is indicated as a protected forest area. Whereas, its business license issued by authorized institutions with local governments.

PP 10/2010 raises several problems, i.e. criminalizes the entrepreneur in the field of plantation, while the source of mistakes in the past seemed forgotten such as the cause of use non definitive land. Some provinces such as Central Kalimantan, Riau and Riau Islands do not have Befitting Integrated Map which causes non definitive forest system. While, North Sumatera, South Kalimantan, West Kalimantan, East Kalimantan, and Lampung are possesing Befitting Integrated Map but use of definitive land is not resolved.

The impact is uncertainty having business in the plantation sector. Whereas, the opportunity of land addition is precisely matching with the aim of increase in exports of non-oil and gas as well as the addition of the foreign exchange and to open up job opportunities which means reducing unemployment and pressing poverty.

Of course, PP 10/2010 inflicted a loss upon the company which invest in the plantation that its business permits issued by authorized institutions with local governments. “Based on the rules at the time, it had been issued a business license that also valid.”

Besides that, the implementation of the transitional provisions of the PP does not give freedom to the plantation companies in anticipating it. In other sentences, the entrepreneur becomes a victim of the uncertainty of business rules. They precisely become the party that blamed.

Other problem is the termination of employment of plantation company’s employees. It is estimated, the amount of labor that its relation severed with plantation companies is around 9-10 million people. During this time, they and their families are entrusting their livelihood to the plantation companies.

“Unfortunately, the process of drafting this Government Regulation is unknown and it is not consulted to public or stakeholders, especially they who are affected,” Djasarmen said in the room of Riau Islands senators of Parliament Complex, Senayan, Jakarta, Friday (5 / 3). The enactment of PP 10/2010 is feared affecting the continuity of plantation industries, especially oil palm plantations.

For example, the existence of oil palm plantation along with its industry succeeds opening isolation area. The Association of Indonesian Oil Palm Entrepreneurs (GAPKI) notes, the total exports of oil palm worth U.S. 12 billion is the largest contributor besides the oil and gas. Oil palm industry employs 9-10 million people.

He added, the government ignoring the spirit of regional autonomy which its aim is developing and improving remote areas through efforts in the field of plantation. “Of course, the business licenses of the plantation have been running in accordance with the provisions at the moment, because of the governor and the regents are authorized.”

Due to the various issue, Djasarmen added, Committee II DPD suggests the government fixing the PP 10/2010, including the transitional provision of PP does not give freedom to plantation companies to maintain its continuance in order to improve and contribute to the economy of Indonesia.

Then, the PP which intends to correct the previous rules must appreciate and respect the continuity of business and the business license in the field of plantation that issued in the period 1999-2006. Actually, the policy mistakes are in the Ministry of Forestry.

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